Washington (AFP) – President Donald Trump said Wednesday the United States will impose a 15 percent tariff on imports from South Korea, as he touted a “full and complete trade deal” between the two countries. “South Korea will give to the United States $350 Billion Dollars for Investments,” Trump said in a post on his Truth Social platform, adding that the country would buy $100 billion in liquefied natural gas or other energy products.
The 15 percent rate is below a 25 percent tariff that Trump had threatened earlier and was equivalent to deals with Japan and the European Union. Trump added that an additional unspecified “large sum of money” will be invested by Seoul. “This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House for a Bilateral Meeting,” Trump said, offering congratulations to his South Korean counterpart for his “electoral success.”
South Korea’s Finance Minister Koo Yun-cheol said Seoul’s commitment to help the United States revive its shipbuilding industry was instrumental in reaching the deal. “I believe MASGA made the greatest contribution to reaching today’s agreement,” Koo said at a news conference in Washington, referring to the “Make American Shipbuilding Great Again” proposal. “Our world-class shipbuilding companies, equipped with the highest level of ship design and construction capabilities, are expected to help revive the US shipbuilding industry,” he said.
Shares in South Korean shipbuilder Hanwha Ocean, which owns a shipyard in Philadelphia, soared more than 15 percent Thursday. The leaders’ White House meeting will be their first since Lee assumed the presidency in June. In a statement on Facebook, Lee called the deal “the first major trade challenge” since his administration took power, adding: “We have overcome a major hurdle.” “Through this deal, the government has eliminated uncertainty surrounding export conditions and ensured that US tariffs on our exports are either lower than or equal to those imposed on our major trade competitors.”
Lee was elected in a snap vote last month following the impeachment of predecessor Yoon Suk Yeol over his disastrous martial law declaration in December. The deal marks an early victory for Lee’s tenure as head of the export-reliant economy, Asia’s fourth biggest. “This agreement represents the convergence of US interests in revitalizing its manufacturing sector and our determination to strengthen Korean companies’ competitiveness in the American market,” Lee’s statement continued.
But there were mixed reactions in South Korea. Its six major business associations, including the Korea Chamber of Commerce, said in a joint statement: “We view this agreement as a critical milestone that will not only ease trade-related uncertainties but also pave the way for a significant strengthening of economic cooperation between the two countries.” With much of the external uncertainty now resolved, the Korean business community will redouble efforts to boost domestic investment and job creation.
However, a handful of civic groups, including farmers and labour organisations, protested at the US Embassy in central Seoul, opposing “Trump’s madman strategy.” Demonstrators held signs reading “No Trump! No King!” and pointed out that there may be additional negotiations when Lee meets Trump. “Trump’s actions amount to excessive interference in our domestic affairs,” said Park Sung-hoon, head of the Korean Apple Growers Association.
Since returning to the White House in January, Trump has imposed a sweeping 10 percent tariff on trading partners — with extra rates for dozens of economies set for August 1 — alongside steeper tolls on steel, aluminium, and autos. News of the deal with South Korea came as Trump on Wednesday imposed 25 percent tariffs on Indian goods and 50 percent on those from Brazil.
© 2024 AFP
